Wednesday, 19 July 2023

Decision 824/2023

Decision on the ex officio investigation conducted by the Directorate-General for Competition into the cosmetics and personal care product market, in order to determine whether the conditions for the application of the provisions of Article 1 of L. 3959/2011 (Greek Competition Act) and/or Article 101 TFEU are met regarding possible anti-competitive practices in the context of a vertical agreement, following the Settlement Submissions by the companies under the names “CAUDALIE SAS” and “CAUDALIE HELLAS”

Decision 824/2023

File (PDF) Decision 824/2023
Date of Issuance of Decision July 19th, 2023
Issue Number of Government Gazette

Publication pending

Relevant Market

Market for the production and marketing of high quality and price cosmetics that are distributed through selective distribution networks (pharmacies)

Subject of the Decision Decision on the ex officio investigation conducted by the Directorate-General for Competition into the cosmetics and personal care product market, in order to determine whether the conditions for the application of the provisions of Article 1 of L. 3959/2011 (Greek Competition Act) and/or Article 101 TFEU are met regarding possible anti-competitive practices in the context of a vertical agreement, following the Settlement Submissions by the companies under the names “CAUDALIE SAS” and “CAUDALIE HELLAS”
Legal Framework

Article 29A of Law 3959/2011.

Operative part of the Decision

The Hellenic Competition Commission, in plenary, unanimously decided, in an open vote, as follows:

A. Finds that “CAUDALIE SAS” and “CAUDALIE HELLAS” infringed, according to the above grounds of the Decision, Article 1 of Law 3959/2011 and 101 TFEU due to their participation in a prohibited vertical agreement.

B. Orders the companies under the names “CAUDALIE SAS” and “CAUDALIE HELLAS” to refrain in the future from the infringement of Articles 1 of Law 3959/2011 and 101 TFEU found in the above grounds.

C. Imposes a fine totalling one hundred eleven thousand and five hundred twenty one euros and thirteen cents (€111,521.13) on “CAUDALIE SAS” and “CAUDALIE HELLAS” for committing the infringement of Articles 1 of Law 3959/2011 and 101 TFEU, found in the above grounds.

Company(ies) concerned
1. CAUDALLIE HELLAS
2. CAUDALLIE SAS
Summary of Decision

By its Decision no. 824/2023, adopted in plenary, following the relevant Statement of Objections on the infringement of Article 29A of Law 3959/2011, found, in the light of the evidence available in the case file, that the undertakings concerned engaged in a practice of prohibiting the use of online advertising platforms, in the context of a vertical agreement, in breach of Articles 1 (1) of Law 3959/2011 (Greek Competition Act) and 101 (1) TFEU, which lasted from 29.3.2021 to 31.3.2023. In particular, the undertakings concerned prohibited outright the promotion of its products via online price comparison platforms, including a prohibition of the promotion of its products on both exclusively price comparison platforms and online platforms price comparison tools of dual function,

The above behavior entirely prevents the use of online advertising channels, in particular, the use of price comparison services and tools and, therefore, constitutes a restriction on the effective use of the internet. This is a hardcore restriction within the meaning of Article 4 point (c) of Regulation 330/2010, now Article 4 point (e) of Regulation 720/2022 and, therefore, shall not be exempted under the above block exemption Regulations nor under the individual exemption provided for in Article 1 (3) of Law 3959/2011 and 101 (3) TFEU, as the relevant conditions are not met. On the same grounds, no individual exemption shall be understood on the basis of the "safe harbour" applicable to de minimisagreements, which do not significantly restrict competition in accordance with Article 101(1) TFEU.

The Plenary of the HCC unanimously imposed jointly and severally on “CAUDALIE SAS” and “CAUDALIE HELLAS” a fine totalling €111,521.13. 

Judicial Means -
Decisions by the Court of Appeal of Athens (Administrative Division) -
See Press Release HERE
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